meeting minutes, september 10, 1951, volume 38, part 4

t

. Minutes of actions taken by the Board of Governors of the

164eral Reserve System on Monday, September 10, 191.

PRESENT: Mr. Martin, ChairmanMr. SzymczakMr. EvansMr. VardamanMr. Powell

Mr. Carpenter, Secretary

Mr. Sherman, Assistant Secretary

Minutes of actions taken by the Board of Governors of the

-ral Reserve System on September 7, 1951, were approved unanimously.

Memorandum dated September It, 19)1, from Mr. Sloan, Director,

lon or Examinations, recommending an increase in the basic

el4IV of John F. Clark, Federal Reserve Examiner, from $),400 to

))6°0 per annum, effective September 16, 19)1.

Approved unanimously.

Memorandum dated August 30, 19)1, from Mr. Carpenter, Secretary

the -oara, recommending that the basic annual salary of Miss Barbara

4'1111% Clerk-typist in the Office of the Secretary, be increased from

2)730 to $2,877 and

41)tenther 16, 19)1,

that her title be changed to Minutes Clerk, effective


Memorandull'I dated August 30, 19)1, from Mr. Carpenter, Secretary

c)D theAuourd, recommending an increase in the basic salary of Miss

4 E. Burke, Clerk-typist in the Office of the Secretary, from

C()\-)0 to 2,730 per annum, effective September 16, 19)1.


Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

9/10/51 -2-

Memorandum dated September 4, 19)1, from Mr. Leonard, Director,

l ivision of Bank Operations, recommending an increase in the basic

"larY of E. Ralph Massey, Technical Assistant in that Division,

5,800 to $6,400 per annum effective September 16, 1951.


Memorandum dated September 4, 1951, from Mr. Leonard, Director,

1)11/ision of Bank Operations, recommending that J. N. Kiley, Jr.,

4cleral Reserve Examiner, be transferred to the position of Technical

44istant in the Division of B.Ink Operations, with no change in his

ksesent basic salary of $6,400, effective as of the date he enters

4.kn duty in the Division. The memorandum also stated that the

'81011 of Examinations was agreeable to this transfer.

Anproved unanimously.

Letter to Mr. Hill, Vice President of the Federal Reserve Bank

1:1111adelphia, reading as follows:

"In accordance with the request contained in your

letter of September 5, 1951, the Board approves the desig-nation of the following as special assistant examinersfO' the Federal Reserve Bank of Philadelphia:

Mario A. Bucci Thomas A. Kenny

Herbert Denish John D. Moran

Paul E. Kim, Jr. Charles H. Sulzberger, Jr.

Robert E. McCarthy John L. McKeever"

P. H. Delphey, Jr.


Press release dated September 10, 1951, reading as follows:


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"The Board of Governors of the Federal Reserve

System is pleased to announce the appointment of Mr. RoyL. Relerson as Special Consultant to Oliver S. Powell,

Chairman of the National Voluntary Credit Restraint

Committee. Mr. Relerson is Vice President and Economistat the Bankers Trust Company of New York and was formerly

Assistant Professor of Accounting and Finance at North-

western University and Lecturer in Economics at the

Graduate School of Business Administration, New York

University. He is well known to the banking communityfor his addresses on monetary and banking questions.The BPnkers Trust Company of New York has given Mr.

Reierson a leave of absence for four months to assistin the Voluntary Credit Restraint Program.

"Mr. Reierson succeeds Mr. Roland I. Robinson as

consultant to Governor Powell. Mr. Robinson, who is

Professor of Banking at Northwestern University, servedas consultant during the summer period ending August 25."


Letter to the Presidents of all Federal Reserve Banks and the

vice Presidents in charge of the Detroit and Los Angeles branches,

as follows:

"Reference is made to the Board's letter of April 13,

19)1, (5-1308) with which was enclosed a copy of a memoran-

clUm received from the Air Force setting forth the locations

°f the Procurement Field Offices and the area which each

serves. For your information there is enclosed a memoran-

uum received from the Department of the Air Force dated

September ), 19)1, showing a revised list of the addresses

Of the Air Force Procurement Offices and the area eachserves:,


Letter to Mr. Roger W. Jones, Assistant Director, Legislative

Refere

11", Bureau of the Budget, Washington, D. C., reading as follows:


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"This refers to your letter of September ), 1911,

requesting our views on a draft of a proposed Executive

order entitled 'Executive Order Providing for the Per-

formance of Certain Defense Housing and Community Facil-

ities and Services Functions'."The proposed Executive order, insofar as it affects

the functions of the Board of Governors, would (1) dele-

gate to the Director of Defense Mobilization the authorityto determine critical defense housing areas and to makethe findings relative to such determinations, and (2)

delegate to the Housing and Home Finance Administratorthe authority vested in the President to suspend resi-

dential credit restrictions in such areas."This is to advise that the Board has no objection

to the issuance of the proposed order. However, to avoidany possible ambiguity, it is suggested that paragraph2 of the draft be amended by placing a period after 1921and striking out the clause 'to suspend residential credit

restrictions under the Defense Production Act of 1950'.The effect of this suggested amendment would be to assurethat the Housing and Home Finance Administrator would be

delegated all of the authority vested in the Presidentby sectfon 102(b) of the Defense Housing and Community

Pacilities and Services Act of 19)1, inasmuch as sec-tion 102(b) refers to the relaxation as well as the

Suspension of residential credit restrictions."


Letter to Board of Directors, The Colonial Trust Company,

sburgh, Pennsylvania, reading as follows:

"Pursuant to a request submitted through the Federal

Reserve Bank of Cleveland, the Board of Governors of the

l'ederal Reserve System hereby gives its consent under theProvisions of Section 18(c) of the Federal Deposit In-slarance Act to the absorption by The Colonial Trust

leicimPany, Pittsburgh, Pennsylvania, of the Bank of Ohio

.1111eY, Pittsburgh, Pennsylvania, without an increase

It4 Your capital and surplus to amounts which will equal

4he aggregate capital and surplus, respectively, of the

14c) banks involved in the absorption, provided prior

ZPProval is obtained from the appropriate State authori-41ee and provided the absorption is effected substantially

-'11 accordance with the plan as submitted."


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Approved unanimously, fortransmittal through the FederalReserve Bank of Cleveland.

Letter to Lt. (len. R. S. McLain, Comptroller, Department of the

Pentagon Building, Washington, D. C., reading as follows:

"In connection with operations under the currentV-loan program, it has come to the Board's attentionthat some financing institutions making guaranteed loans

have charged the borrower a commitment fee based on the

maximum amount of the credit rather than the undisbursedPortion of the loan.

"The Board feels that this practice should not be

approved and that, In determining whether a commitmentfee exceeds the maximum rate of 1/2 of 1 per cent hereto-fore prescribed by the Board, the fee should be computed04 the average daily amount of the unused balance of the

credit. Accordingly, the Board proposes to advise theFederal Reserve Banks to that effect in a letter in theform enclosed herewith. Before taking this action, how-ever, the Board will appreciate any comments which yourDePartment may care to make regarding this matter.


Letter to Mr. J. Edgar Hoover, Director, Federal Bureau

ttgation, Vishington, D. C., reading as follows:

"In your memorandum of August 29, 19)1, you pointout that, in an investigation now being conducted by your

Bureau into the activities of Francis Gilbert Paige, Loan

2uarantee Officer for the Veterans Administration in S,Lnlilego, apparent violations of Regulation X by the Dennstedt

,er°11113a4y, a San Diego building concern, were uncovered.

1°1-1 indicate that you believe it would be more practicalOr Your Bureau to continue this phase of the investigation14a8much as it is but a part of a very complex situation.

"The Board is in entire agreement with your suggestion

flcl- will forward a copy of your memorandum to the Federal'Ieserve Bank of San Francisco with instructions not to

e°rnmence an independent investigation of the subject

of


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"company until such time as your investigation has beencompleted. Naturally, the Board would appreciate re-

ceiving advice from your Bureau upon the completionof this undertaking."


Memorandum dated September 10, 19)1, from Mr. Hooff, Assistant

C°11nsel, recommending that, in addition to the material previously sub-

taitted for publication in the Law Department of the September issue of

the Federal Reserve Bulletin, statements in the form attached be included

Publication:

LegislationDefense Housing Act of 19)1

Margin RequirementsAmendment to Regulation T



meeting minutes, september 10, 1951, volume 38, part 4

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